Indonesia is still far behind other countries in terms of utilizing waste into electrical energy sources, even though the discourse has emerged 11 years ago. Waste-to-energy projects are urgently needed to reduce waste emergencies and fulfill renewable energy needs.

Coordinating Minister for Food Zulkifli Hasan has invited entrepreneurs to become investors in the Waste to Energy (WTE) project. Later, Zulkifli continued, the investor can cooperate with the Daya Anagata Nusantara Investment Management Agency (Danantara).

He guarantees that the licensing process can run quickly. At least, the process can be completed within 3 months after submission. The licensing process was made easier after the issuance of Presidential Regulation Number 109 of 2025.

"The licensing process will be accelerated, the waste processing project must become electrical energy," he said at the CNBC Waste to Energy Investment Forum 2025, at Menara Bank Mega, Jakarta (19/11).

He added that one of the requirements for this project to be profitable is a minimum waste supply of 1,000 tons because it is in accordance with processing standards.

Zulkifli said that he supports the acceleration of PSEL projects in various regions, including PSEL South Tangerang (Tangsel) as one of the priority projects. 

South Tangerang Mayor Benyamin Davnie emphasized the city government's full support for the project implementation. Based on the Letter of Appointment of Tender Winner (SPPL) in April 2025, it has determined the private consortium that will act as the executor of the work.

The project implementer, PT Indoplas Energy Hijau (IEH) - a subsidiary of OASA - together with its technology partner through the joint venture PT Indoplas Tianying Energy, expressed technical readiness to enter the construction phase.

Not Just Looking at Profit

The Ministry of Environment (MOE) has requested that waste-to-energy projects not be run solely with a profit orientation. KLH considers this project to be an urgent need for the country in overcoming the waste emergency, so environmental ideals must be placed as the top priority.

MOE Director of Air Quality Protection and Management Edward Nixon Pakpahan said that the profit approach will actually hinder the acceleration of the implementation of waste treatment technology.

"If we only talk about profit, then this waste-to-energy project will not work," he said.

He asked all parties, both Danantara as the technical implementer and potential investors, not to focus too much on profit.

Danantara Supports PSEL Project

Daya Anagata Nusantara Investment Management Agency (BPI Danantara) ensures its support for the government's flagship Waste To Energy program in Indonesia.

Managing Director of Investment Danantara Indonesia, Stefanus Ade Hadiwidjaja said that the Waste to Energy (WtE) Program, which is supported by Presidential Regulation 109/2025, is a breakthrough to overcome the waste emergency issue in Indonesia.

Danantara focuses on the development of WtE through the construction of Waste Power Plants (PSEL) that use the right technology and investment to not only process waste but also aim to reduce greenhouse gases, save land, and produce clean energy solutions.

Danantara also plays a role in conducting tenders for each PSEL in each city and region that is ready to build WtE and currently there are 4 cities that are ready to start tendering for the WtF program, namely Bogor, Bekasi, Denpasar and Yogyakarta.

Deputy Chairman of MPR RI Eddy Soeparno said Indonesia has entered an urgent phase of waste management. Indonesia produces 56 million tons of waste per year, but only 40% is managed while 60% is disposed of illegally.

"The biggest source of waste comes from households and markets, especially plastics and food waste," he said.

PSEL is considered a downstream solution that directly reduces the volume of waste, but policy and funding improvements are a challenge. Eddy highlighted the weak fiscal capacity of local governments.

Eddy believes that carbon credits can add to the economics of the project, making it more attractive to investors.